Tissue Regenix confident on post-COVID-19 prospects

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Tissue Regenix Group PLC (LON:TRX) said it is confident in its prospects once the Coronavirus (COVID-19) pandemic subsides and healthcare procedures return to a normalised level.

The medical technology company has entered the UK and specific EU markets with OrthoPure XT and established white label manufacturing capabilities with a large global partner.

READ: Tissue Regenix says Texas expansion plans are on track

The capacity expansion programme will alleviate the supply issues that have previously hindered growth and will provide a step-change in the business trajectory, as the firm secures additional distribution contracts and increases its geographic outreach.

During 2020, the group said it achieved significant milestones. It added it remains committed to creating long-term, sustainable value for shareholders by increasing market penetration through leveraging relationships with strategic partners and improving portfolio offering with product line extensions for identified, underserved clinical applications.

Last year, Tissue Regenix received CE Mark approval and signed UK and EU distribution agreements for OrthoPure XT, as well as signing a new strategic collaboration with a top 10 global healthcare company for white label product.

It also diversified the sales portfolio through additional commercial opportunities secured for growth product lines, such as AmnioWorks.

The expansion programme commenced in San Antonio will provide more capacity in the first half this year, while the relocation of the UK facility to Garforth, Leeds, is expected to deliver annualised savings of £400,000 from 2021.

The restructuring of US operations announced earlier this year is estimated to save £500,000 annually.

In the year to 31 December, revenue remained broadly flat at £12.8mln compared to 2019, with Orthopaedics and Dental up 11%, the joint venture GBM-v flat and DermaPure sales down 22%.

Operating loss was £9.8mln from £7.2mln in 2019 driven largely by a non-cash impairment charge of £6.1mln arising from the annual impairment test on the CellRight Technologies.

Cash at year-end was £9.6mln following an equity fundraise raising net proceeds of £13.8mln in June.

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